ON24(US:ONTF)2025-11-10 21:23Revenue Performance - Total revenue for the three months ended September 30, 2025, was $34,602,000, a decrease of 4.7% compared to $36,325,000 for the same period in 2024[17] - Subscription and other platform revenue for the nine months ended September 30, 2025, was $96,729,000, down 5.5% from $102,836,000 in 2024[17] - Revenue from the United States for the three months ended September 30, 2025, was $26.842 million, down from $27.902 million in 2024, representing a decline of 3.8%[38] - The Company recorded $34.602 million in revenue for the three months ended September 30, 2025, down from $36.325 million in 2024, reflecting a 5% decline[92] Net Loss and Profitability - Net loss for the three months ended September 30, 2025, was $6,375,000, compared to a net loss of $11,406,000 for the same period in 2024, representing a 44.5% improvement[17] - The net loss for the nine months ended September 30, 2025, was $22.355 million, an improvement from a net loss of $33.284 million for the same period in 2024[28] - The net loss per share for the three months ended September 30, 2025 was $(0.15), an improvement from $(0.27) in the same period of 2024[86] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $33,852,000, down from $40,332,000 in 2024, indicating a reduction of 16.0%[17] - The total stock-based compensation expense for the three months ended September 30, 2025, was $7.258 million, compared to $11.876 million for the same period in 2024[80] - The company recorded stock-based compensation expense of $21.766 million for the nine months ended September 30, 2025, down from $34.289 million in 2024[28] - Total restructuring costs for the three months ended September 30, 2025 amounted to $0.107 million, a decrease of 78% compared to $0.486 million in the same period of 2024[89] Cash and Liquidity - Cash and cash equivalents increased to $47,241,000 as of September 30, 2025, from $14,933,000 as of December 31, 2024[15] - Cash provided by operating activities for the nine months ended September 30, 2025, was $8.512 million, compared to $3.821 million for the same period in 2024[28] - The total cash, cash equivalents, and restricted cash at the end of the period was $47.329 million, significantly up from $11.108 million at the end of September 2024[28] - As of September 30, 2025, the Company’s cash equivalents and marketable securities total $168.365 million[51] Assets and Liabilities - Total assets decreased to $224,788,000 as of September 30, 2025, from $250,953,000 as of December 31, 2024[15] - Total liabilities decreased to $80,463,000 as of September 30, 2025, from $91,541,000 as of December 31, 2024[15] - The accumulated deficit increased to $(370,024,000) as of September 30, 2025, from $(347,669,000) as of December 31, 2024[15] Future Commitments and Plans - The company entered into a 65-month lease agreement for its new headquarters in San Francisco, with total committed lease payments of approximately $5.4 million, commencing in October 2025[61] - The company has $38.6 million available for future share repurchases under the 2025 Repurchase Program, which allows discretionary repurchases of common stock[71] - The Company expects to incur additional restructuring costs of $0.5 million to $0.8 million in the fourth quarter of 2025[90] Performance Obligations and Deferred Revenue - As of September 30, 2025, the total amount of remaining performance obligations is $122.1 million, with $58.1 million billed and $64.0 million unbilled, expecting to recognize 72% as revenue in the next 12 months[43] - Deferred revenue recognized during the three months ended September 30, 2025, that was included in deferred revenue at the beginning of the period was $10.5 million[42] Other Financial Metrics - The fair value of marketable securities as of September 30, 2025, is $127.926 million, down from $167.803 million as of December 31, 2024[47] - The Company had outstanding standby letters of credit of $1.4 million as of September 30, 2025, as a guarantee for its leased space[57] - The revolving line of credit was amended to decrease borrowing capacity from $50.0 million to $25.0 million, with a maturity date in August 2026[57] - The prime referenced rate for the revolving credit facility was 7.25% as of September 30, 2025, down from 7.50% as of December 31, 2024[58] Legal and Tax Matters - The company believes it is reasonably possible that a loss will result from sales and use tax assessments in the range of zero to $0.5 million, but has not recorded an accrual as of September 30, 2025[64] - The company has not recorded any accrued litigation expense related to ongoing legal proceedings, as it is unable to reasonably estimate a possible loss at this early stage[65] Stock and Shareholder Information - The company reported a weighted-average share count of 42,654,869 for the three months ended September 30, 2025[17] - As of September 30, 2025, the company had 15,376,506 shares of common stock reserved for future issuance under its equity incentive and employee share purchase plans[67] - In the three months ended September 30, 2025, the company repurchased 1,287,003 shares at an average price of $5.45 per share, totaling $7.1 million[71]